LANXESS Reports FY2025 Decline, Sees Recovery in H2 2026

LANXESS reported lower financial performance for fiscal year 2025, reflecting weak market conditions and geopolitical uncertainty. The company recorded declines in revenue and earnings, alongside continued cost control measures and debt reduction. It expects business conditions to improve in the second half of 2026 at the earliest.

Specialty chemicals company LANXESS reported that fiscal year 2025 was impacted by a weak market environment and ongoing geopolitical uncertainty. Revenue declined by 10.9 percent to EUR 5.673 billion, compared to EUR 6.366 billion in the previous year. EBITDA pre exceptionals fell by 16.9 percent to EUR 510 million, down from EUR 614 million year-over-year. The EBITDA margin pre exceptionals stood at 9.0 percent, compared with 9.6 percent in the prior year.

The decline was attributed to weak demand across most customer industries, resulting in lower sales volumes. Reduced raw material purchase prices and pricing pressure from the Asian region led to lower selling prices. Operating results were also affected by the absence of earnings from the Urethane Systems business unit following its sale on April 1, 2025, along with negative currency effects.

“2025 was an extremely tough year for the entire chemical industry and for LANXESS as well. For 2026, we expect to see positive momentum in the second half of the year at the earliest, for example through the German government’s infrastructure stimulus program,” said Matthias Zachert, LANXESS CEO. “For us, therefore, the guiding principle for 2026 remains: We control the things we can control. That means continuing to cut costs, streamline processes, and create new market opportunities.”

For fiscal year 2026, LANXESS expects EBITDA pre exceptionals to range between EUR 450 million and EUR 550 million.

The company has initiated further cost-reduction measures targeting permanent annual savings of approximately EUR 100 million by the end of 2028. These measures include plans to reduce 550 jobs, with about two-thirds of the reductions in Germany. The company stated that the reductions will primarily affect administrative functions and will be implemented through natural staff turnover and demographic changes.

Previously announced production network optimizations from August 2025 are expected to deliver additional annual savings of around EUR 50 million. Combined, these measures are projected to result in total structural cost savings of approximately EUR 150 million by the end of 2028.

Short-term labor cost adjustments have also been introduced. Employees under collective bargaining agreements will follow a 35-hour workweek until the end of the year. For management and non-collective employees, base salaries will remain unchanged without increases.

Under the “FORWARD!” action plan introduced in 2023, LANXESS has already achieved permanent annual savings of approximately EUR 150 million since the end of 2025.

The company also reported a reduction in net financial liabilities, primarily due to proceeds from the sale of the Urethane Systems business. Net financial debt stood at EUR 2.023 billion at the end of 2025, representing a 15.0 percent decrease from EUR 2.381 billion at the end of 2024.

In segment performance, the Consumer Protection segment recorded sales of EUR 1.889 billion in fiscal year 2025, a decline of 9.2 percent from EUR 2.081 billion in the prior year. EBITDA pre exceptionals increased slightly by 1.4 percent to EUR 290 million, compared to EUR 286 million. The EBITDA margin pre exceptionals rose to 15.4 percent from 13.7 percent.

The Specialty Additives segment reported revenue of EUR 2.056 billion, down 6.9 percent from EUR 2.209 billion in 2024. EBITDA pre exceptionals declined by 11.5 percent to EUR 201 million from EUR 227 million. The EBITDA margin pre exceptionals decreased to 9.8 percent from 10.3 percent.

The Advanced Intermediates segment generated revenue of EUR 1.653 billion, representing an 8.4 percent decline from EUR 1.804 billion in the previous year. EBITDA pre exceptionals fell by 39.0 percent to EUR 128 million, compared to EUR 210 million. The EBITDA margin pre exceptionals declined to 7.7 percent from 11.6 percent.